Fuller Tax Blog Blog

Picture of Part I of California Form 540NR Schedule CA with questions regarding taxpayer residency status.

California Form 540, Schedule CA, Line 25: Adjustment to Health Savings Account Deduction

When preparing a California resident’s state income tax return on a Form 540, the form begins with the taxpayer’s federal Adjusted Gross Income (AGI) to calculate the taxpayer’s state taxable income. However, one or several adjustments may be required to be made to the taxpayer’s federal AGI. These adjustments are based on the fact that, although the California code generally...

Picture of Part I of California Form 540NR Schedule CA with questions regarding taxpayer residency status.

California Nine-Month Presumption of Residency Rule

Whether or not someone can be taxed by the state of California and how that person would be taxed by California depends entirely on whether that person is considered a resident, part-year resident, or non-resident of California. Distinguishing between a resident, a part-year resident or a non-resident involves a lot of facts and circumstances surrounding the person’s connection with the...

Photograph of page 1 and 2 of Federal Form 1040 stacked on top of one another.

Form 1040, Line 12: What counts as Business Income?

Most new self-filing taxpayers who begin working on their own Form 1040 will get to Form 1040, Line 12, and see the following, which very often will leave them confused: The term “business income”, as far as Form 1040 Line 12 is concerned, does not have as broad of meaning as you may expect. In this context, business income could...

Picture of the Capitol building in Des Moines, Iowa.

Iowa Form IA 1120, Step 2: Regular Corporation, Cooperative, or UBIT?

For many tax preparers, getting to Step 2 when completing a corporate income tax return for the state of Iowa can introduce a lot of confusion. What’s the difference between a “regular corporation”, a “cooperative”, or a “UBIT”, and how do you tell which one the corporate taxpayer should identify itself as on the Form IA 1120? Note first that...

Photo overlook of the hearing room for the Senate Finance Committee just before proceedings began.

Senate Finance Committee to Consider Bill Authorizing IRS to Regulate Tax Preparers

The Senate Finance Committee will hold a session Wednesday to markup an original bill intended to combat identity theft and tax return fraud. The bill comes in light of the recent events where identify theft had been successfully committed using taxpayer records available via an online service of the Internal Revenue Service. The session will be held Wednesday, September 16th...